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However, finding it can be difficult. Many go to their bank. That is always a bad idea as the advice is not independent. Banks sell only their own products or those of a few big insurers or pension providers, so they cannot find the best deal for you from the whole market. It is vital that you get independent advice from a well-qualified adviser.
There are three key words to look for:
Independent: That means they have to search the whole market for the best product for you. Only those that do so are legally allowed to call themselves independent financial advisers.
Fees: Most advisers make the bulk of their money through commission on products they sell. That gives them a conflict of interest – are they recommending the product because it is good for the customer or because it pays them well? All independent advisers have to offer fees as an option. But it is safest to choose one that only charges fees to avoid the danger that fees and commission will get mixed up.
Qualifications: Many IFAs have very rudimentary qualifications. It is best to check that an adviser specialises in the subject you need advice in and has the extra qualifications to do so.
You can find an IFA who fulfils these conditions at www.unbiased.co.uk. You can even choose whether the adviser is male or female, if that make you feel more comfortable. Get two or three local contacts and arrange a first, free meeting with them. Then choose who you will go with.
* Written by Paul Lewis. This article first appeared in the November 2008 edition of Saga Magazine. Paul is the editor of Saga Magazine's Money News section. Paul's opinions are his own and for general information only. Always seek independent financial advice.